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Press Release15 November 2023Siemens AGMunich
Siemens and Siemens Energy shape solution to provide stability and accelerate separation in India
“Together,
we shaped a solution that is in the best possible interests of all parties and
accelerates the separation of Siemens and Siemens Energy in India. Besides
the immediate cash inflow, we are also enabling an additional line for customer
guarantees, making a strong overall contribution to the future stability and
growth of Siemens Energy,” said Roland Busch, President and
Chief Executive Officer of Siemens AG.
“For our shareholders, the accelerated
demerger of Siemens Ltd. India’s energy activities will further sharpen the portfolio focus of
Siemens. It also simplifies and strengthens our corporate structure in India, a
fast-growing and strategically important market.”
Proposal
to initiate demerger procedures in India
As part of the spin-off in 2020, Siemens and Siemens Energy did not separate their businesses in India as it was not feasible at that time. As a next step, Siemens and Siemens Energy have agreed to propose to the Board of Directors of Siemens Ltd. India a demerger of the energy business. Siemens Energy is to ultimately acquire a controlling stake in the demerged energy business. The aim is to complete the demerger in 2025 – significantly earlier than previously planned.
As part of the spin-off in 2020, Siemens and Siemens Energy did not separate their businesses in India as it was not feasible at that time. As a next step, Siemens and Siemens Energy have agreed to propose to the Board of Directors of Siemens Ltd. India a demerger of the energy business. Siemens Energy is to ultimately acquire a controlling stake in the demerged energy business. The aim is to complete the demerger in 2025 – significantly earlier than previously planned.
Measures to facilitate Siemens Energy customer guarantees
Siemens has agreed with Siemens Energy indirect financial measures totaling one billion euro to allow third parties to arrange guarantees for Siemens Energy. Firstly, Siemens allows Siemens Energy to use its 5% shareholding in Siemens Ltd. India, worth 750 million euro, as collateral for guarantees. If the collateral is drawn, Siemens has committed to buy up to 5% of shares in Siemens Ltd. India for 750 million euro. Secondly, Siemens grants payment deferrals at market conditions in the amount of 250 million euro, also to be used as collateral for guarantees. These commitments enable Siemens Energy to provide appropriate collateral for the bank consortium providing a guarantee line. This line serves to secure Siemens Energy's business development and participation in the German energy transition.
Siemens has agreed with Siemens Energy indirect financial measures totaling one billion euro to allow third parties to arrange guarantees for Siemens Energy. Firstly, Siemens allows Siemens Energy to use its 5% shareholding in Siemens Ltd. India, worth 750 million euro, as collateral for guarantees. If the collateral is drawn, Siemens has committed to buy up to 5% of shares in Siemens Ltd. India for 750 million euro. Secondly, Siemens grants payment deferrals at market conditions in the amount of 250 million euro, also to be used as collateral for guarantees. These commitments enable Siemens Energy to provide appropriate collateral for the bank consortium providing a guarantee line. This line serves to secure Siemens Energy's business development and participation in the German energy transition.
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Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company employed around 311,000 people worldwide. Further information is available on the Internet at www.siemens.com.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company employed around 311,000 people worldwide. Further information is available on the Internet at www.siemens.com.
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